Bear market rally
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A bear market rally refers to a phenomenon in asset prices, for example the stock market, in which prices trend upwards temporarily during a longer downward cycle. In numerical terms, a bear market rally is typified by an upturn in prices that fails to reach the previous index peak before resuming a general downward trend that falls below the minimum index achieved before the start of the rally.
During a bear market, the question of whether or not an upturn in prices is the start of new bull market or is actually a bear market rally is often one of the most debated questions among investors.
Notable bear market rallies occurred in the Dow Jones index in after the 1929 stock market crash leading up to the market bottom in 1932, as well as throughout the late 1960s and early 1970s. The Japanese Nikkei stock average has been typified by a number of bear market rallies since the late 1980s while experiencing on overall downward trend.